Success is all about timing. Analysts say that one of the biggest indicators of success is the rate at which a company grows. While they also warn that of the 90% of tech companies that go belly up, 70% of them grew too quickly.
If you want to succeed you've got to grow at the right pace and scale at the right time.
The 6 Indicators it's Time To Scale
- You've Been At It For A While If you've been in business for some time and you've noticed a steady incline in your numbers and your users then you should consider scaling. Your current size could be holding you back from making significant waves. Or you could hit a stalemate and have run out of meaningful and worthwhile ideas. Some new members in the team could breathe new life into your startup.
- You Can't Handle The Magnitude Of Your User Base If you're struggling to keep up with your user base, you're already late. You shouldn't be playing catch up, instead, you should be growing side by side. If you've gotten an influx of users (and they're not going anywhere) you should think about expanding your team. This way the quality of your work and product isn't hindered by your size, resulting in users leaving because your output wasn't consistent.
- Your Customer Base Is Outgrowing you To stay ahead of schedule with product launches and new features, your customer base should not be outgrowing your team. Depending on your size and industry you should have a ratio of how many users/ customers per employee. That could be 1 to 100 or 1 to 10000 depending on the output you'll need to maintain your product for all your users.
- Your Team Is Overworked When you're just starting your team is probably going to be overworked. But if you are entering your third year and they're still overworked it's time you think about hiring or in the very least outsourcing. You should only hire strategically to avoid bloating your workforce. This can be an instant drain on profits. If your teams overworked doing minuscule, redundant tasks outsource those so your worker bees will be able to focus on what they do best.
- You're Meeting Goals and Targets (Ahead Of Schedule) If you're meeting your targets ahead of schedule consistently, then it's obvious you're growing. It's now time to scale your startup so that it equals your growth. If you don't scale now you'll only end up being overwhelmed by the growth which could lead to your demise.
- You Have Regular Profits Profit is the keyword here. As a tech startup, you're likely going to get funding and even backers. When you do that doesn't mean you should grow. You should wait to have regular profits, so much so that you can predict with certainty how much money you're going to be making. Once you're making that kind of profit you can think about growing.